Assignments

Final - Winter '03

Answer the following question, in approximately 8-10 pages (about 2500 words). Your answer is due in my mailbox or under my office door by noon, Monday March 17th. Make sure you keep a copy.

Network effects are pervasive in media industries. Explain the two related concepts of network externalities and lock-in, and briefly describe their economic implications. Illustrate how they manifest themselves in two of the media sectors studied in class. Pick one sector where the primary emphasis is on "content" (like music or movies) and one where the primary emphasis is on "conduits" (like telecommunications or the internet). Discuss the main implications for industry strategies in these two sectors.

( Obviously, all the sectors we studied have "content" and "conduit" aspects, so there are no wrong answers. Simply choose a pair of sectors that allows you to make interesting comparisons and be clear about what aspect of these sectors you are referring to.)

In grading papers, special attention will be paid to three factors:

• Are the economic concepts accurately explained and is the economic analysis correct?
• Does the paper include appropriate references and substantiation?
• Is the paper clearly written?

Expectations (with credit to Prof. McGinn):

"ARGUE your case, provide GROUNDS for your claims, be PRECISE in thought and expression, and GIVE CREDIT where your thought is indebted to the work of others. Originality of thought, depth of analysis, and felicity of expression will weigh in your favor. Serve filet mignon, avoid ground chuck. You are expected to follow standard footnote, endnote, and bibliographic conventions. Your paper must be thoroughly professional in ALL respects, including appearance.".

Guidelines, as presented in Wed 2/12 class: